Monetary policy of India

Monetary policy is the process by which the monetary authority of a country, generally central bank controls the supply of money in the economy.^[1] In India, the central monetary authority is the Reserve Bank of India (RBI).

YouTube Encyclopedic

1/5
Views:
22 323
195 029
10 090 892
129 672
59 352

Transcription

Monetary policy committee

The Reserve Bank of India Act, 1934 (RBI Act) was amended by the Finance Act, 2016, to provide a statutory and institutionalised framework for a Monetary Policy Committee, for maintaining price stability, while keeping in mind the objective of growth. The Monetary Policy Committee is entrusted with the task of fixing the benchmark policy rate (repo rate) required to maintain inflation within the specified target level. As per the provisions of the RBI Act, three of the six Members of the Monetary Policy Committee will be from the RBI and the other three Members will be appointed by the Central Government.

The Government of India, in consultation with RBI, notified the 'Inflation Target' in the Gazette of India Extraordinary dated 5 August 2016 for the period beginning from the date of publication of the notification and ending on 31 March 2021 as 4%. At the same time, lower and upper tolerance levels were notified to be 2% and 6% respectively. Inflation rate in 2020 is 6.2% .^[2]^[3]^[4]^[5]^[6]

Monetary operations

Instruments of monetary policy

Key indicators

The key indicators as of 10 June 2024 are^[7]

Indicator	Current rate
Inflation	6.52% (23 Jan)
CRR	4.50%
SLR	18.0%
SDF	6.25%
MSF	6.75%
Bank rate	6.75%
Reverse repo rate	3.35%
Repo rate	6.5%
GDP forecast	7.00% FY25

References

^ Monetary Policy, Investopedia
^ "Monetary Policy Committee constitution under the Reserve Bank of India Act, 1934 notified".
^ "Reserve Bank of India". www.rbi.org.in. Retrieved 9 October 2020.
^ ^a ^b ^c Data taken from RBI Archived 29 August 2011 at the Wayback Machine
^ Credit Authorization Scheme Came Into Existence During the Tenure of P C Bhattacharya
^ "Reserve Bank of India".
^ Current Policy Rates, Reserve Ratio, Reserve Bank of India

v t e Central banks
Global	Bank for International Settlements Basel Committee on Banking Supervision Financial Stability Board
Policies	Capital requirement Contractionary monetary policy Expansionary monetary policy Basel Accords
Implementation	Capital control Discount rate Interest rates Money creation Open market operation Sovereign wealth fund
Bretton Woods system	International Monetary Fund World Bank Group International Bank for Reconstruction and Development International Centre for Settlement of Investment Disputes International Development Association International Finance Corporation Multilateral Investment Guarantee Agency
Lists	List of central banks Central banks and currencies of Africa Central banks and currencies of Asia-Pacific Central banks and currencies of the Caribbean Central banks and currencies of Europe Central banks and currencies of the Americas

v t e Reserve Bank of India
Regulation	Reserve Bank of India Act, 1934 Monetary Policy Committee
People	Governor of the Reserve Bank of India Deputy governor of the Reserve Bank of India
Buildings	Reserve Bank of India Staff College RBI Monetary Museum
Subsidiaries	Bharatiya Reserve Bank Note Mudran Security Printing and Minting Corporation of India

This page was last edited on 10 June 2024, at 15:40

From Wikipedia, the free encyclopedia